GHYG vs QQQ
iShares US & International High Yield Corp Bond ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. GHYG offers more diversification with 1,730 holdings.
Side-by-Side Comparison
| Metric | GHYG | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $198M | $496.3B | |
| Dividend Yield | 6.29% | 0.44% | |
| Holdings | 1,730 | 108 | |
| YTD Return | -1.64% | +16.64% | |
| 1Y Return | +0.56% | +27.27% | |
| 3Y Return (annualized) | +7.48% | +25.96% | |
| 5Y Return (annualized) | +2.79% | +14.54% | |
| Volatility (annualized) | 8.0% | 30.6% | |
| Max Drawdown | -52.4% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2012 | Mar 10, 1999 |
GHYG vs QQQ Performance
iShares US & International High Yield Corp Bond ETF (GHYG) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year GHYG returned +0.56% while QQQ returned +27.27%. Year to date, GHYG is down 1.64% versus a gain of 16.64% for QQQ.
Over three years, GHYG compounded at +7.48% per year against +25.96% for QQQ; over five years the annualized figures are +2.79% and +14.54% respectively. Across the full 14-year window we track, QQQ has the edge at +13.03% annualized vs +4.24%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 8.0% for GHYG. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -52.4% for GHYG and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GHYG charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, GHYG currently yields 6.29% against 0.44% for QQQ.
Holdings Overlap
GHYG and QQQ share 0 holdings out of 1110 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GHYG or QQQ?
GHYG has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, GHYG or QQQ?
Over the past year GHYG returned +0.56% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (14 years), GHYG annualized +4.24% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, GHYG or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 8.0% for GHYG. Worst drawdown: GHYG -52.4% vs QQQ -83.0%.
Should I hold both GHYG and QQQ?
GHYG and QQQ have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GHYG and QQQ?
GHYG and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1110 unique securities.
Which pays a higher dividend, GHYG or QQQ?
GHYG yields 6.29% while QQQ yields 0.44%, so GHYG currently pays the higher dividend yield.
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